Oil prices may have mounted a strong comeback after hitting a 10-plus-year low under $30 per barrel in February, but the recovery looks like it’s in jeopardy as demand falls on weak economic data, drillers ramp up activity, and outages in key oil-producing areas wind down. This has many calling for crude prices to fall from the current $45 per barrel to at least $36 per barrel.

3 Factors Pointing to Lower Oil Prices

Oil prices are up roughly 65% from a decade low of $27 per barrel in February after a number of production outages (including the forest fire in Fort McMurray, Alberta) ate into the global supply.

But the recovery and broader bullish sentiment for oil prices has stalled. In fact, there is a good chance oil prices could spiral from the current $45 per barrel to $36 per barrel and possibly dip below $30. The following factors could continue to put serious pressure on global oil prices.

Brexit Vote and Weakness in the Eurozone: Oil prices stalled after the June 23 Brexit vote undermined financial markets. Investors are worried about how the Brexit vote will impact the U.K. economy. Many believe the Bank of England will need to cut down its already record-low lending rate of 0.5%. One estimate suggests the Brexit vote will sap 100,000 barrels of oil per day off global demand in 2017.1

Oil Output Increasing: Despite weak economic indicators from Asia, the eurozone, Canada, Russia, and the United States, oil producers continue to generate record levels of oil. Hundreds of thousands of barrels of oil are beginning to trickle in from Alberta after forest fires crippled output two months ago. Iran is expecting to raise its exports to four million barrels a day. The record-breaking oil supply and record-breaking inventories will see additional fuel as Nigeria and Libya ramp up production. On top of that, the U.S. rig count has been on the rise for the past month. These extra rigs could flood the market with an additional 250,000 barrels of oil per day.2

Saudi Arabia Embraces Low Oil Prices: Saudi Arabia is no hurry to see oil prices climb higher. In fact, Saudi Arabia’s energy minister said the oil market was stabilizing and becoming more balanced. This means the world’s biggest oil exporter has no intentions of cutting oil production in an effort to raise global oil prices.3

Going forward, unless there is a serious cut in oil production or there is an unexpected global demand for oil, oil prices will continue to face pressure and trend downwards. The big question is, how low will oil prices go?

Learn-To-Trade.com, Canada’s Leader in Commodity Trading Courses

A commodity like oil is a popular way for investors to diversify their retirement portfolio. In addition to buying an oil and gas stock or exchange-traded fund that follows oil and gas prices, a popular way to invest in a commodity like oil (or gold, silver, natural gas, corn, cattle, coffee, etc.) is to buy or sell a futures contract.

Futures trading adds additional depth that you don’t get with stocks. When you buy a stock, you bet it will go up at some point in the future. With futures trading, you speculate on what the commodity will be worth at a specific time and whether it will go up or down.

Unfortunately, a lot of investors avoid futures trading because of the apparent difficulty of predicting the future price movements of an underlying commodity like oil. But studying commodity trading strategies with the licensed professionals at Learn-To-Trade.com will show you how to confidently make profitable trades.

In addition to learning about commodities and futures trading, at Learn-To-Trade.com, you’ll also learn about other proven investing strategies, including stock option trading, stock index trading, and forex trading.

Learn-To-Trade.com also has a unique Lifetime Membership that allows you to re-attend any part of the program you like, as many times as you like. To learn more about Learn-To-Trade.com’s commodity trading courses, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade

4.0

2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

https://www.learn-to-trade.com/testimonials/testimonial-3/

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade

4.0

2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

https://www.learn-to-trade.com/testimonials/joseph-l/

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade

5.0

2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

https://www.learn-to-trade.com/testimonials/harley-s/

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade

4.0

2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

https://www.learn-to-trade.com/testimonials/partick-m/

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade

4.0

2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

https://www.learn-to-trade.com/testimonials/iouri-g/

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade

5.0

2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

https://www.learn-to-trade.com/testimonials/akos-b/

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade

4.0

2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

https://www.learn-to-trade.com/testimonials/robert-b/

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade

5.0

2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

https://www.learn-to-trade.com/testimonials/uldus-v/

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade

4.0

2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

https://www.learn-to-trade.com/testimonials/dean-k/

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade

4.0

2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

https://www.learn-to-trade.com/testimonials/peter-p/

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade

5.0

2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

https://www.learn-to-trade.com/testimonials/shelley-p/

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading. Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

Learn To Trade

5.0

2016-10-07T08:56:52-04:00

Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading. Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!

Media

Disclaimer: All statements, whether expressed verbally or in writing, are the opinions of Learn-To-Trade.Com Inc., its instructors and/or employees, and are not to be construed as anything more than an opinion. Examples presented are for educational purposes only. There is significant risk in trading financial assets and derivatives. Students / subscribers are responsible for making their own choices and decisions regarding all purchases or sales of stocks or issues. At no time is any stock or issue presented by Learn-To-Trade Inc. and its employees to be construed as a recommendation to buy or sell any stock or issue. Learn-To-Trade Inc. is not a broker or an investment advisor. It is strictly an educational service.